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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Wyätt Gwyön who wrote (28214)3/16/2005 11:24:27 AM
From: CalculatedRiskRead Replies (1) of 306849
 
Thanks!

For that calculation, I used the CPI-U (all items) less shelter so it includes food and energy. And I do think RE is California #1 industry right now.

Great point on liquidity. I think RE has added an enormous amount of liquidity to the economy so the a slow down will remove that source of liquidity. There is definitely a potential negative feedback loop as RE slows down, people lose jobs in the RE related fields, and RE slows down more.

Best Regards!
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